Ok so my HR papers clearly state lump sum payout for 6 weeks. Is this the case? Or will I stay on payroll.
My plan is to stash the lump sum and immediately start drawing unemployment. But if I stay on payroll I cant get unemployment and I will have to eat up the slow payout.
Some states let you draw both unemployment and severance.
I was laid off Nov. 17 and I can tell you it was not lump sum but it's not true payroll either. Here's how it works: You are on payroll until the date they tell you (mine was Dec. 1 so my last true "payroll" check was Dec. 15.) Then my "severance" checks began on Dec. 29. I will get 6 severance checks paid to me every 2 weeks. I got 12 weeks of pay so my last severance check will be March 9. I would not think they would have changed this process after all this time of doing it this way. This is how it's been done for years. Check with HR, because to my knowledge, you would not get 1 lump sum of money.
You should get severance checks paid to you bi-weekly for your term of severance. But...no insurance premiums , 401K or HSA/FSA money is taken out, so the checks are larger than previous paychecks, which helps.
And BTW...you can apply for unemployment on or after your effective termination date that HR gives you (probably Feb. 1). However, you can't start getting unemployment benefits (money) until your severance payouts are complete.
I'm not sure how your papers say lump sum payout for 6 weeks. It's either or.
lump sum means to pay you at one time.
pay out, means you will get paid every 2 weeks until they have paid out all of the money due you.
I'm not sure how your papers say both
well it seems like WS change up the severance packages (lump sum vs, continual pay) each time they lay folks off. Go figure
Some of my friends got lump sum when they were let go.
When I was let go, I got continual pay. That was in Sept and I was salaried. That may play a difference too.
Severance is paid in a lump-sum payment under the terms of your severance plan. To be eligible for severance benefits, Windstream requires that you sign a Waiver and Release Agreement. Severance is paid as soon as administratively practicable once the signed Waiver and Release Agreement is received and the seven (7) day revocation period expires.
And I'll give you one guess how I know that.
It wasn't a lump sum last July when I was laid off
If your severence is paid by lump sum you will be able to get unemployment immediately (all states) ....if your severence keeps you on payroll for six weeks your eligibility for unemployment benefits will be determined by the state you reside in for instance..the state of MD allows you to receive both however the state of VA wants your severence to end.
SC does not consider severance pay whether lump or payout over time does not deduct from weekly unemployment benefits.
Alabama's policy was defined by "work" they did not consider pay outs or vacation payments. As long as you did nothing for pay you drew a check.
Whether it is a lump sum or continual payout, most states will not pay you unemployment benefits until the severance money is done. For example. I received a lump sum payout from another company I was laid off from. I went to sign up for UI benfits and was told I had to wait till that lump sum of money was considered used. In my case that was 3 months. When I was laid off from WS in Sept, I received 12 weeks of severance paid out every 2 weeks. My last WS pay was 12/29/17. I am JUST being eligible to receive UI benefits. I suggest you check with your state's unemployment office. ALSO NOTE: unemployment claims ask if you received any severance money. Don't lie for that question because they can immediately find out if you did or not.
From another post:
Severance Eligibility:
Severance is paid in a lump-sum payment under the terms of your severance plan.
Whether this is the case or not seems to be the mystery. Some are saying continual while others say lump. Policy may have changed for those talking of past layoffs vs recent.